Judge Rejects Both Proposed Tribune Co. Reorganization Plans
November 1, 2011 at 3:45 AM (PT)
A bankruptcy judge has rejected both reorganization plans proposed for TRIBUNE CO.
The CHICAGO TRIBUNE reports that U.S. Bankruptcy Court Judge KEVIN CAREY, who indicated that he found the company's own plan, supported by a group of senior creditors, preferable to that of AURELIUS CAPITAL MANAGEMENT, told the company and its creditors to go back and find a solution or he would appoint a trustee. Nevertheless, he noted some elements of the TRIBUNE plan, including treatment of some junior creditors, voting procedures, and the release of some employees from liability, that, if fixed, could lead to the plan being approved.
The bankruptcy case has been in court for almost three years.